Case nº Ruling No. AAR/44/CE/2/2012 in Application No. AAR/44/CE-I/6/2011 of Authority for Advance Rulings, March 23, 2012 (case In Re : Danone Foods And Beverages (I) Pvt. Ltd. Vs)

President:P.K. Balasubramanyan, Chairman and Shri Y.G. Parande, Member
Defense:Central Excise Tariff
Resolution Date:March 23, 2012
 
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Court Information Delhi High Court AAR Cases
Citation 2012 (280) ELT 563 (AAR)
Judgment Date 23-Mar-2012
Party Details In Re : Danone Foods And Beverages (I) Pvt. Ltd. Vs 
Case No Ruling No. AAR/44/CE/2/2012 in Application No. AAR/44/CE-I/6/2011
Judges P.K. Balasubramanyan, Chairman and Shri Y.G. Parande, Member
Acts Central Excise Tariff

Ruling:

Y.G. Parande, Member

1. M/s. Danone Foods and Beverages India Pvt. Ltd. (the applicant) have filed this application under Section 23C of the Central Excise, 1944 seeking a ruling on the classification of two products proposed to be manufactured by them, namely "Yum Creamy" and "Yum Chusky" under the Central Excise Tariff Act, 1985 (CETA), and the eligibility of "Yum Chusky" for exemption under Notification No. 1/2011-C.E., dated 1-3-2011.

2. The applicant is a wholly owned subsidiary of an Indian company, namely, M/s. Danone India Pvt. Ltd., which, in turn, is a wholly owned subsidiary of a foreign holding company M/s. Danone Asia PTE Limited, Singapore.

3. After perusal of the application and consideration of the comments sent by the concerned Commissioner i.e. Commissioner of Central Excise, Rohtak, the Authority vide its Order dated 13th December, 2011 allowed the application for ruling on the following two questions:

1. What would be the classification of the fermented milk product, namely, "Yum Creamy" and non-fermented milk based beverage namely, "Yum Chusky" under the Central Excise Tariff Act, 1985; and

2. Whether the exemption under Notification No. 1/2011-C.E., dated 1-3-2011 in respect of flavoured milk of animal origin would be available to the product "Yum Chusky".

4. We have considered the application and heard Shri V. Lakshmi Kumaran, Advocate, for the applicant and Shri Sumit Kumar, AR, for the Commissioner.

5. The applicant states that they have been engaged in trading of dairy products such as flavoured yogurts, packaged dahi and chocolate and vanilla flavoured smoothies and are now entering into manufacturing. For this purpose they have set up a manufacturing unit situated in Phase-II, FoodPark, Industrial Estate, RAI, Sonepat, Haryana in which they propose to manufacture a fermented milk product namely "Yum Creamy" and non-fermented milk based beverage namely "Yum Chusky". The details of the composition of these products and the manufacturing process are as follows:

Yum Creamy: This product has the following composition:

(a) Whole cow milk 

83.04% 

(b) Sugar 

13.00% 

(c) Strawberry flavour 

0.04% 

(d) Vitamin 

0.42% 

(e) Culture dream (bacterial culture for fermentation) 

0.0015% 

(f) Rice flour 

2.50% 

(g) Wheat flour 

1.50% 

The product is manufactured by mixing all the ingredients, except the bacterial culture, in a mixing tank and sterilizing the resultant mixture in a sterilizer where it is heated to a temperature of around 128° C. Thereafter, the mixture is stored in a fermentation work tank wherein the bacterial culture is added to and it is left to stand for 7-8 hours, leading to the formation of fermented milk. The fermented milk so formed is then put in an agitator wherein it is blended into a...

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